Cannabis Dispensaries Reel in $24 Million in Legal Sales in First Two Months

Dispensaries in the state have only been allowed to conduct legal cannabis sales for two months. No forecasts for recreational cannabis sales were made by any state officials so it is unclear whether the first retail stores on the East Coast are ahead or behind. Northampton and Leicester are home to the earliest Massachusetts retail stores to open.

The regulatory agency of cannabis in Massachusetts, the Cannabis Control Commission, reported the aggregate gross of $23.8 million in sales. The first 1-8 weeks of recreational sales, beginning on November 20th of 2018, accumulated to an aggregate gross of $20,459,394. Week 9, January 14th through the 20th, added another $3,360,208 for a total of $23,819,602. The amount of units sold on week 9 totaled to 76,606 at an average spent per unit price of $43.86.

Recreational cannabis in Massachusetts is taxed at 17% from the state and at 3% locally for a total tax rate of 20%.

Risk of Prosecution for Marijuana-Related Companies. If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. The Department of Treasury recently issued guidance noting: “ The Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”